[This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS.

CONFIDENTIAL.

[4476]

C.O. 15433

250

[February 2.]

SECTION 3.

VERO 7 MAY

No. 1.

(No. 38.)

Sir J. Jordan to Sir Edward Grey.--(Received February 2.)

(Telegraphic.) P.

CANTON-HANKOW Railway,

Peking, February 2, 1909.

I have received your telegram No. 26 of yesterday's date on this subject.

I have authorized Mr. Bland to lay before Chang Chih-tung the two alternatives of construction, either under a British chief engineer vested with adequate controlling powers or else by contract, and to point out to him that these constitute the only two solutions of the question which can effectively satisfy our right to preferential treatment. The scheme of construction by contract is strongly opposed by the Board of Communications, who hope by a policy of obstruction to obtain eventually a financial loan on the lines of the one they secured for the redemption of the Peking-Hankow Railway. The Board are influenced by their jealousy of Chang Chih-tung's interference in railway matters.

[2150 b-3]

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